QUALCOMM Incorporated Earnings: Beats Expectations

S&P 500 (NYSE:SPY) component QUALCOMM Incorporated (NASDAQ:QCOM) reported net income above Wall Street’s expectations for the second quarter. Qualcomm designs and manufactures digital wireless telecommunications products and services based on its CDMA technology and other technologies.

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QUALCOMM Incorporated Earnings Cheat Sheet for the Second Quarter

Results: Net income for QUALCOMM Incorporated rose to $2.23 billion ($1.28 per share) vs. $999 million (59 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year-earlier quarter.

Revenue: Rose 27.6% to $4.94 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: QUALCOMM Incorporated reported adjusted net income of $1.01 per share. By that measure, the company beat the mean estimate of 86 cents per share. It beat the average revenue estimate of $4.84 billion.

Quoting Management: “I am pleased to report another quarter of record revenues and earnings per share, driven by strong demand for 3G- and 4G-enabled devices across both developed and emerging regions,” said Dr. Paul E. Jacobs, chairman and CEO of Qualcomm. “We are excited to see the continued growth of 3G and 4G smartphones, as well as new mobile computing devices. We are increasing our operating expenses to facilitate additional 28 nanometer supply and to continue to position our industry-leading chipset solutions for the opportunities ahead.”

Key Stats:

The company has seen double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 37.2%, with the biggest boost coming in the second quarter of the last fiscal year when revenue rose 45.5% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 19.7% and in the fourth quarter of the last fiscal year, the figure rose 22.1%.

The company has beaten estiamtes for two quarters in a row. In the first quarter, it topped expectations with net income of 85 cents versus a mean estimate of net income of 79 cents per share.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the third quarter has moved up from 76 cents a share to 81 cents over the last ninety days. Over the past three months, the average estimate for the fiscal year has climbed from $3.22 per to share to $3.45.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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